A combined heat and power microgrid system is provided that stores energy in the form of compressed air that can then be utilized as needed in the form of electricity. The compressed air may be generated with energy from multiple electrical energy sources, such as renewable energy sources. The energy stored as compressed air/heat is used to charge a battery by utilizing a pulley system and a barrel housing that transfers kinetic energy generated by the release of the compressed air to an array of piezoelectric generators that can produce electricity, which is stored in the second battery. In addition, water may be extracted from the compressed air storage tank. In this way, energy produced by the renewable sources can be accessed during periods of high need or low production and water may be collected.